Indian takeaway becomes too expensive
Improved global communications has, in the past, made the option of outsourcing trading to India a viable proposition. You only have to look at how many of the country’s citizens have risen to senior positions in overseas banks to realise that the country possesses a large, skilled and well-educated workforce.
The possibility of employing such talent at a fraction of the cost of more traditional centres such as London, New York, Tokyo and Singapore is an obvious attraction.
However, a Reuters report this week says that salaries of Indian FX dealers are surging. They are predicted to increase by 30% this year, having already doubled in the last 12 to 18-months. Dealers are now said to be earning as much as their colleagues in other Asian centres, such as Singapore and retaining staff is said to be a problem.
The inflation is being driven by increased activity from commercial banks, as well as the expansion of foreign houses such as Credit Suisse, Lehman Brothers and Goldman Sachs. Reuters reports that the average annual basic salary for a middle manager is now around $37,000 to $49,500. Bonuses bring the figure up to around $200,000. While this is still relatively low, it has to make the likelihood of the outsourcing of trading to India less feasible.